Saturday, October 31, 2015

7 Things to Consider While Buying Online term Insurance plans

Online insurance plans like an online term insurance plan, online health insurance plans are getting popular due to their lower cost compare to buying similar insurance plans from agents or insurance agency.  An online terms insurance plan for 1crore for 30 years may cost you around 5500 from ICIC Prudential iProtect which is way lower than if you buy it from any insurance agent.

Since this cost saving comes due to reduced marketing cost on Selling insurance product, You also lose the opportunity to discuss this with your insurance agent. In order to take full advantage of cheap Online insurance plans you need to remember certain things about Online insurance plans before you buy them. here I am listing seven such important points about online insurance plans like term insurance which any insurance buyer should know.

7 Things to Remember While buying Online term Insurance plans

This is some of the things I know about online insurance plans from my experience which is worth sharing with you guys and I hope it helps to better understand online insurance plans e.g. online term insurance, online health insurance etc

1) The premium offered by Insurance company like ICICI, Kotak or Aviva assumes that you are a healthy person and free from any critical illness. if your health is not normal your premium may increase or your insurance cover may be rejected. Don't lie about your health on insurance application form because you need to go through the stringent health check.

2) Insurance cover starts as soon as you made payment but it is subject to the clearing of stringent medical check and receiving other documents in order. If you fail in medical test or not able to provide any important document your insurance cover can be rejected.

3) It's important to know your and your families physical details and medical history while buying an online insurance plan. You may be required to fill your weight, height, family medical history and details of other life insurance policy before you buy. Since the application is filled by yourself online on Insurance company's site, it's good to keep these details handy.

Buying online term insurance plans- questions to ask
4) In order to get your insurance cover approved, you need to submit proof of identity, address proof and income proof to the company physically. They may also require scan copy of these documents, but the current procedure also requires a physical copy of identifying proof, address proof, and income details.

5) One important thing to remember while buying online insurance plan is Cover. This is probably the most important factor. Don't buy a low insurance cover because premium doesn't increase in the proportion of cover. I mean premium for 1 crore insurance cover is not double what is for 50 lakh cover. Always buy more than sufficient insurance cover rather than compromising. One of the most important reason People buys online term insurance plan is to get maximum cover in low price.

6) It's good to have net banking account or credit card in your name if you are buying an online insurance plan. Similarly, if you are buying an online insurance plan for your wife then use her net-banking account or credit card to pay the premium. Many insurance companies insist on using self net-banking account, debit card or credit card to make payment.

7) Another important thing before buying online term insurance plan is to check availability in your city. Some of the insurance company like ICICI Prudential offers their online term insurance plan called iProtect only on selected cities. Companies are expanding their network now from metro and tier 1 cities to tier2 cities and town, But you must check whether online term insurance plan you are buying is available in your city or not.

Things to remember while buying online term insurance plans

Best Online Term Insurance Plans

Here are some of the popular online term insurance plans:

  1. Aviva i-Life
  2. ICICI Prudential - iProtect Plan
  3. Kotak e-Term
  4. HDFC Life - Click to Protect
  5. LIC - e-Term Plan
  6. Max Life - Max Life Online term Plan
  7. SBI Life - eShield
  8. Bajaj Allianz - iSecure
  9. Aegon Religare - iTerm Plan

These were some of the important things to remember while buying online term insurance plans. knowledge is key and buying something like insurance plans which last for a long duration you must perform due diligence. Always go for best company and low price.

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  1. I found it best to buy any kind of insurance product online. It's LOT CHEEPER than buying from agent and you get better service and response. Life insurance, medical insurance and travel insurance can be best compared and bought online.

  2. don' buy term insurance plan, instead of that go for endowment plans, those offers value of money and term insurance is just waste of money. You pay for insurance but your money is gone, you would not get it back, neither get any interest on them. laos always take insurance from LIC, as they have better claim settlement reputation, new insurance companies like ICICI lombard, HDFC, Metlife, no one know how good they are with claim settlement, and you won't know until it's too late, and than you can not do anything at all. So only trust insurer, which most peoples are trusting i.e. Life Insurance Corporation of India (LIC).

  3. There are so many hidden charges and fees in non term insurance. You could do better by buying term and investing the difference on you own. Buy term for you working life.

  4. Hi,
    Thanks, for sharing this useful information, Can you explain me what is term insurance plan. And how it works, what is the benefit of term insurance as compare to life insurance.

  5. Thanks for explaining how to buy online term insurance plan, One of my friend is having Isecure term insurance plan, is that is better than you mentioned above?

  6. Can you guide me that is better before buy life insurance, I have compared insurance plans from online comparison portals like


  7. Thank you for sharing such great information. It is informative, can you help me in finding out more detail on Online Term Insurance India, i am interested and would like to know more about this field and wanted to understand the basics of Retirement Insurance Company

  8. Thank you for such great help on choosing Best Online Term Plan India. As a newbie in investment, i am quite confused for which term plan should i choose, but now i guess i can choose better, thanks again.